Infosys Q2 net up 6.1 percent
In constant currency, revenue is now expected to grow 8-9 per cent this fiscal for Infosys, much below industry body Nasscom’s growth estimates of 10-12 per cent for 2016-17.
Bengaluru: India’s second-largest IT company, Infosys, on Friday posted a 6.1 per cent rise in net profit at Rs 3,606 crore for the July-September quarter but disappointed the market with a cut in its annual sales growth outlook.
The lowering of guidance by Infosys, second time in three months, came a day after its larger rival Tata Consultancy Services posted a muted set of numbers at a time when the industry is facing “uncertain business environment” and softness in the banking and financial services.
Infosys’ consolidated revenue for the quarter was up 10.7 per cent at Rs 17,310 crore, as compared with Rs 15,635 crore in the year-ago period. The company lowered its sales growth forecast to 7.5-8.5 per cent in US dollar terms for this fiscal from earlier estimate of 10 per cent announced in July.
The downgrade disappointed the market as Infosys shares closed with losses of 2.34 per cent on the BSE, wiping out Rs 5,662 crore from the shareholders wealth. Infosys’ in July, too, had lowered the revenue growth forecast to 10 per cent from up to 11.5 per cent projected in April.
In constant currency, revenue is now expected to grow 8-9 per cent this fiscal for Infosys, much below industry body Nasscom’s growth estimates of 10-12 per cent for 2016-17.
“While we continue to navigate an uncertain external environment, we remain focused on executing our strategy and increasing momentum of our software-plus-services model. Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance,” Infosys CEO Vishal Sikka said.
In US dollar terms, the consolidated net profit rose by 3.8 per cent to $539 million in the September quarter, while revenue grew 8.2 per cent to $2.5 billion.
